Linkers Corporation

In the course of business, the Company receives personal information and other confidential information from customers, and if leakage, falsification, or unauthorized use occurs, this could lead to claims for damages from customers and loss of credibility. Although the Company has obtained ISMS certification and the Privacy Mark, and implements internal training and systematic countermeasures, the risk cannot be completely eliminated.

There is a possibility that business locations could suffer catastrophic damage due to large-scale earthquakes or other natural disasters, and indirect damage from disasters affecting outsourcing partners, as well as suppression of business activities by ordering parties and contractors due to deterioration of social infrastructure and reduced personal consumption, is also anticipated. Although measures such as establishing means to confirm employee safety, securing stockpiled supplies, and securing uninterruptible power supplies have been implemented, disasters exceeding expectations may not be fully addressed.

The Business Matching Business has relatively low barriers to entry, aside from the exclusive retention of order candidates, and there is a possibility of intensifying competition from new domestic and overseas entrants. Currently, competition is limited due to the construction of an industry coordinator network and corporate database, but if sufficient differentiation and functional improvement are not achieved, this could affect business results and financial condition.

Since many client companies have a March fiscal year-end, sales tend to be concentrated in March, particularly for research services. In the quarterly sales for FY2025 (ended July 2025), the third quarter (including March) stood out at ¥462,292 million, while other quarters ranged from ¥290,299 million to ¥304,572 million. Although efforts are being made to level out this trend through new customer acquisition and delivery date control, the tendency toward seasonal bias may continue.

As of the end of FY2025 (ended July 2025), tax loss carryforwards exist, which currently reduce the burden of corporate taxes and other taxes. If these tax loss carryforwards are resolved or expire in the future, a tax burden based on the normal tax rate will arise, which could affect business results and financial condition. The likelihood of occurrence is assessed as medium, with the timing expected to be within one to two years.

Stock acquisition rights have been granted to officers and employees under the stock option system. As of the end of FY2025 (ended July 2025), the number of shares underlying stock acquisition rights was 350,400 shares, representing a potential dilution ratio of 2.54% relative to the 13,797,000 shares issued. If the exercise of these rights progresses, this could dilute the share value held by existing shareholders.

While the proactive utilization of advanced technologies such as generative AI presents an opportunity for business growth, delayed response could lead to a decline in competitiveness and brand value. Furthermore, the utilization of advanced technologies requires ensuring safety, reliability, and ethical consideration, and insufficient response to these requirements could lower social credibility and brand image.

The core services "Linkers Sourcing," "Linkers Marketing," and "LFB (Linkers for BANK / Linkers for Business)" are provided as internet-based matching platforms, and if unauthorized access to cloud servers or a system failure occurs and recovery is prolonged, this could disrupt service provision. Although cloud servers are made redundant across two locations in different sites and a backup and monitoring system has been established, unpredictable troubles cannot be completely eliminated.

Founder and Representative Director and President Yoshihiro Maeda plays an important role in formulating and executing management policy and business strategy, and if he becomes unable to perform his duties, this could affect business results and financial condition. Although efforts to reduce dependence are underway through information sharing and delegation of authority to executive staff, the degree of dependence remains high at present.

As the Company is a small organization, securing, developing, and retaining excellent human resources for business expansion is recognized as the most critical management challenge. If sufficient personnel cannot be secured and developed at the necessary times, or if personnel turnover progresses, this could disrupt business operations and the expansion of business areas. While the Company responds through the use of diverse recruitment channels, on-the-job training, and the design and operation of personnel systems, securing personnel in a highly competitive recruitment market involves high uncertainty.